IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Impact of War and Terrorism on Sovereign Risk in MENA Countries

  • Mahmoud Haddad


    (University of Tennessee-Martin, College of Business and Public Affairs)

  • Sam Hakim


    (Pepperdine University, Malibu)

Registered author(s):

    The prolonged war in Iraq, the political turmoil in Lebanon, the heightened tension between the Israelis and the Palestinians, and the specter of an attack on Iran have all significantly shaken business uncertainty levels in several MENA countries. Sovereign risk – the credit risk assessment concerned with the obligations of central governments – is believed to have increased. In response, credit rating agencies like Moody’s and Standard and Poor’s have revised their ratings or placed specific countries on their watch list, a move which normally precedes a credit rating change. Using data from Morgan Stanley, Freedom House and the World Bank, we quantify and explain the variability of sovereign risk in 5 MENA countries and two control countries on specific dates between 2002 and 2006, around which a tragic event has taken place. Our methodology allows us to test how the heightened political tension in the Middle East has altered the risk profiles of these countries, and provides an additional valuation tool to traditional agency ratings.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Paper provided by Economic Research Forum in its series Working Papers with number 394.

    in new window

    Length: 16 pages
    Date of creation: Apr 2008
    Date of revision: Apr 2008
    Publication status: Published by The Economic Research Forum (ERF)
    Handle: RePEc:erg:wpaper:394
    Contact details of provider: Postal: 7 Boulos Hanna Street, Dokki, Cairo
    Phone: 202-3370810
    Fax: 202-3616042
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:394. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.